 "Top trading calls from Motilal Oswal: Buy L&T, Havells India; Sell BHEL")
Nifty Outlook
Immediate support at 7700 has been defended well as Nifty saw a swift up-move & regained 7800. Momentum indicator suggests that there could be a temporary pullback before any major fall. A break above 7870 would unfold the pullback move & propel nifty towards 8080.
LARSEN & TOUBRO: BUY
Target : Rs 1475
Stop Loss: Rs 1304
Post a sharp decline the stock saw some stability around the 1340 level. 'Piercing Line' pattern along with the positive divergence on the daily RSI augur well for the support to be held. We expect a stable recovery which could be participated with a stop at Rs 1304 for an initial target up to Rs 1475.
Havells India: BUY
Target : Rs 290
Stop Loss: Rs 265
‘Bullish Engulfing' on the weekly scale re-affirms the medium term support to stay intact. We expect momentum to accelerate & the stock to continue its relative outperformance against its peers. The ongoing momentum could be participated with a stop at Rs 265 for an initial target upto Rs 290.
BHEL : SELL
Target : Rs 160
Stop Loss: Rs 181
Fresh breakdown from a continuation pattern indicates weakness to continue. We expect the stock to continue its underperformance. BHEL could be traded with a stop above Rs 181 for an initial target upto Rs 160.
Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
